1 option
Price Rigidities, Asymmetries, and Output Fluctuations / Ricardo J. Caballero, Eduardo M.R.A. Engel.
- Format:
- Book
- Author/Creator:
- Caballero, Ricardo J.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w4091.
- NBER working paper series no. w4091
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 1992.
- Summary:
- In this paper we characterize the average response of output to aggregate demand shocks in an economy where individual firms follow state-dependent pricing rules. We find that: (i) the average response of output to aggregate demand shocks decreases with core inflation and varies non-monotonically with aggregate uncertainty, (ii) there is an asymmetry in the response of output to aggregate demand expansions and contractions, which increases with core inflation and decreases with aggregate uncertainty, and (iii) this asymmetry also rises with the degree of asymmetry of aggregate demand shocks. Using annual data from 37 moderate-low inflation countries for the period 1960-1982, we find support for the basic implications of the model.
- Notes:
- Print version record
- June 1992.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.